Recorded RBI impact
Fine: Rs 2.00 L
Monetary penalty · Fresh imposition
Published by RBI
5 Jan 2026
Case Brief
By an order dated December 31, 2025, RBI imposed a monetary penalty of ₹2 lakh on Jila Sahakari Bank Limited, Mau, Uttar Pradesh. The penalty was levied after a statutory inspection and subsequent notice process found that the bank had failed to comply with RBI directions on KYC, specifically by not periodically reviewing the risk categorisation of accounts at least once in six months and not carrying out periodic KYC updation for customers. The action was taken under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the BR Act after supervisory findings showed non-compliance with RBI's KYC directions. The bank had not ensured periodic review of account risk categorisation at least once in six months and had not carried out periodic updation of KYC for customers.
Operating Impact
The bank must absorb the financial penalty and address the compliance gaps identified by RBI. Going forward, it needs to maintain a system for periodic risk review and timely KYC updation for customers to avoid further supervisory action.
Regulatory Basis
- Section 47A(1)(c) read with Sections 46(4)(i) and 56 of BR Act
Action Facts
- Primary Impact
- Fine: Rs 2.00 L
- Order Date
- 31 Dec 2025
- Effective From
- 31 Dec 2025
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank